Starbucks price target lowered to $81 from $92 at Wedbush

Wedbush analyst Nick Setyan lowered the firm’s price target on Starbucks to $81 from $92 and keeps a Neutral rating on the shares. The firm notes the company reported Q2 EPS below expectations on disappointing same-store sales growth. Further, Wedbush argues that same-store sales growth visibility is limited as FY24 guidance revisions point to continued headwinds. The firm believes Starbucks’ current valuation appropriately reflects increasingly limited near-term top- and bottom-line visibility, offset by some level of confidence in management’s ability to deliver longer-term annual operating margin expansion and EPS growth in line with the brand’s equity.